Tabarak Paracha
In today’s highly competitive mobile app landscape, maximizing revenue is a critical priority for developers and publishers. For developers prioritizing in-app purchases (IAPs) or subscriptions as their main monetization strategy, adding more in-app advertising (IAA) can be a difficult choice, as it risks potentially losing paying users.
The challenge, however, lies in striking the right balance – showing enough ads to generate meaningful revenue, without alienating users and driving them away from your app. This delicate equilibrium is where the power of generative AI, like ChatGPT, can be a game-changer. By leveraging free AI tools like ChatGPT, app developers can gain unprecedented insights into their user behavior and make data-driven decisions about their advertising strategy.
How to Determine if Adding More Ads in Your App is Worth It
One of the key use cases we’ve unlocked for using AI in this context is determining whether or not you should display more within your app. The conventional wisdom is that more ads equal more revenue, but the reality is often more nuanced – especially if your primary revenue stream has been via IAPs so far. For such apps, showing too many ads can lead to a poor user experience, causing frustrated users to abandon your app altogether.
To find the sweet spot, you can use a generative AI tool like ChatGPT to analyze the correlation between your app’s in-app purchases and ad revenue. We’ve created a video to take you through the process step-by-step. By providing the AI tool with your app’s data, including the schema of your data warehouse, you can ask it to calculate the correlation coefficient between these two metrics.
- A strong negative correlation would indicate that users who make in-app purchases are less likely to engage with ads, and that showing too many ads could cannibalize your in-app revenue.
- A weak or positive correlation, on the other hand, would suggest that you have room to increase your ad load without significantly impacting your in-app purchases.
This insight can be invaluable in determining the optimal ad placement strategy for your app, allowing you to maximize your overall revenue without compromising the user experience.
Overcoming Challenges and Unlocking the Full Potential of Generative AI
While the potential of generative AI in the mobile app space is undeniable, it’s important to note that the technology is not without its challenges. One common issue is the variability in the responses generated by these language models, which can sometimes produce inconsistent or even inaccurate results.
To overcome this, it’s essential to approach the use of generative AI with a critical eye and a willingness to validate the outputs against your own domain expertise and historical data. Additionally, it can be helpful to experiment with different prompts and approaches to find the ones that work best for your specific use case.
Watch the video above for a step-by-step demonstration on how to use ChatGPT to determine whether you should display more ads in your app.
